Circular Economy

This chapter explores the circular economy and its implications for supply chain management. The chapter begins with a brief introduction to the circular economy, focusing on the Ellen MacArthur Foundation’s butterfly diagram as a visual representation of the circular economy. The linear economy is contrasted with the circular economy, which represents a systemic shift that delivers business, economic, environmental and societal benefits. The chapter reflects on the challenges and opportunities associated with implementing a circular economy, emphasising the need for systemic thinking, which is often lacking in current approaches to implementation by businesses. Finally, the chapter concludes by highlighting the need for a transition to a circular economy, which will require changes to our economic models, social norms, behaviours and regulatory frameworks. While challenging, this transition is critical to achieving truly sustainable development.